Scope and the Exemption Certificate 適用範圍及豁免證明書
The Mandatory Provident Fund Schemes (Exemption) Regulation imposes continuing duties on MPF exempted ORSO schemes. Both ORSO exempted schemes and ORSO registered schemes must meet the certificate and employee choice requirements; registered schemes have additional duties.
The employer must keep the MPF exemption certificate prominently displayed at its principal office in Hong Kong. If it has no such office, it must display the certificate at every premises where it employs scheme members, rather than selecting just one workplace.
Every member must also receive a copy of the certificate. Displaying the certificate and giving members copies are separate duties, and completing one does not satisfy the other. [MPFA Study Notes, Tenth Edition, section 6.6](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)
Employee Choice and Reductions in Future Benefits 僱員選擇權及削減日後利益
The employer must give new eligible employees a statement explaining their choice between the MPF exempted ORSO scheme and an MPF scheme. Holding an exemption does not allow the employer to require all these employees to join the ORSO scheme.
An exception applies where legislation of a place outside Hong Kong requires an employee to remain in or join the ORSO scheme and contribute to it. The employer need not offer that employee this choice. An employer's internal policy or contractual requirement alone does not meet this exception.
For an MPF exempted ORSO registered scheme, whenever the employer decides to reduce a member's future benefits or rights, affected members must have an opportunity to join an MPF scheme. This duty can therefore arise even where benefits already accumulated are unaffected. [MPFA Study Notes, Tenth Edition, section 6.6](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)
Changes to Trustees and Their Directors 受託人及其董事的變更
Appointment or retirement of a trustee of an MPF exempted ORSO registered scheme generally requires MPFA's prior approval. The employer must ensure that the person with the power to make the change applies in writing beforehand; this applies to both corporate and individual trustees.
MPFA has exempted the appointment or retirement of a Hong Kong registered trust company from the prior approval requirement. Instead, the employer must notify MPFA in writing within one month after the appointment or retirement. Prior approval remains necessary where the trustee concerned is not a registered trust company.
Changes to a corporate trustee's own directors require a separate assessment. The director change requirement does not apply to a Hong Kong registered trust company, or an overseas incorporated trust company comparable to one that has a significant presence and control in Hong Kong. Other corporate trustees must obtain MPFA's approval before appointing or retiring directors. An overseas trust company qualifying for the director change exception does not thereby qualify for the one-month notification arrangement when it is itself appointed or retired as trustee. [MPFA Study Notes, Tenth Edition, section 6.6](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)
Investment Manager Eligibility 投資經理的資格
When an MPF exempted ORSO registered scheme appoints an investment manager on or after 1 December 2000, it must select an eligible investment management company. The Hong Kong routes cover a corporation licensed for Type 9 (asset management) regulated activity under Part V of the Securities and Futures Ordinance, or an authorized institution registered for that activity.
Alternatively, the company may be authorized by a regulatory authority recognised by MPFA to conduct asset management business under the law of a place outside Hong Kong. These are alternative routes: one company need not satisfy them all. Holding a different category of financial services licence alone is insufficient. [MPFA Guidelines V.12](https://www.mpfa.org.hk/en/-/media/files/information-centre/legislation-and-regulations/guidelines/current-version/part-v/v-12/v_12.pdf)
The certificate, employee choice, trustee and investment manager requirements are major ongoing requirements, rather than a complete list. [MPFA Study Notes, Tenth Edition, section 6.6](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)
Practice
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